United Technologies top executives reap big bonuses and salary increases

Salaries and bonuses rose substantially for United Technologies Corp.’s five highest-paid executives in 2011 as the company took its first step toward a multibillion-dollar acquisition of the Goodrich Corp.

At the top of the executive roster, UTC President and Chief Executive Officer Louis R. Chenevert received $6.18 million in bonuses and salary in 2011, up 10.6 percent from $5.59 million in 2010.

His 2011 base salary of $1.68 million was 5.7 percent more than his $1.59 million 2010 salary. Chenevert’s bonus for the past year was $4.5 million, or 12.5 percent more than his 2010 bonus of $4 million.

When other compensation, including stock options – as reported under Securities and Exchange Commission regulations – is added to the salary and bonus, Chenevert received compensation in 2011 worth $27.7 million. That was up roughly 25 percent from 2010 when his compensation was valued at $22.09 million.

Executive compensation is based on UTC’s overall financial performance for the year, which included a 13.7 percent increase in net earnings, and a 7.1 percent jump in total revenues for 2011.

UTC spokesman John Moran stressed that UTC has had an exceptional year in other ways as well, including the September announcement that it plans to acquire Goodrich Corp. for $18 billion. That will result in the creation of a new UTC Propulsion and Aerospace Systems division, which will include Hamilton Sundstrand, Goodrich and Pratt & Whitney.

The new division will be headquartered at Goodrich’s Charlotte, N.C., base; all of Windsor Locks-based Hamilton’s senior executives will move and some of Pratt’s executives may move.

Marshall Larsen, chairman, president and chief executive officer of Goodrich, will become chairman and CEO of the combined UTC Aerospace Systems unit, Chenevert has said.

Hamilton President Alain Bellemare will be president and chief operating officer of the new unit when the acquisition is completed this year and will oversee Pratt and Hamilton.

UTC also ended 2011 with a 16 percent increase in earnings per share and a 12.9 percent increase in the common stock dividend.

Total cash compensation for the remaining four highest-paid executives at UTC
was:

Gregory Hayes, senior vice president and chief financial officer, $1.94 million in 2011, 16.8 percent better than the $1.66 million he received in 2010;

Geraud Darnis, president of Carrier Corp. division in Farmington, Conn., received just over 19 percent more in salary and bonuses for the past year, pulling in $2.37 million, up from $1.99 million in 2010;

Bellemare, president and chief operating officer of the newly-formed Propulsion & Aerospace Systems division, had total compensation of $1.4 million for 2011. Because Bellemare was not included on the list in 2010, no comparisons were provided from the previous year; and

Didier Michaud-Daniel, president of Otis Elevator division, also in Farmington, was fifth on the list with total salary and bonuses in 2011 of $1.3 million. That was up 5.4 percent from 2010 when he had a total pay package of $1.24 million.

Michaud-Daniel is leaving UTC to return to France and is being succeeded by Pedro Baranda. Baranda most recently served as president of Otis’ South Europe and Middle East area.

David Hess, Pratt’s president, was not among the top five. He was on the list in 2010, with combined salary and bonuses of $1.3 million.